At 11:50 am, the most-active gold for October delivery on the Multi Commodity Exchange (MCX) opened at Rs 28,006 per 10 grams and was trading in the range of Rs 28,040 – Rs 28,043 per 10 grams.
And, gold for far month April delivery opened at Rs 28,861 per 10 grams and was trading in the range of Rs 28,883 – Rs 28,940 per 10 grams.
The US Federal Bank seems to come up with easing to stimulate the faltering US economy.
Investors are curiously waiting for Fed's decision, they are cautiously making moves in gold market with some buying coming in but most of the investors just squaring-off the positions, so as to take fresh positions after the outcome.
Many of the analysts come with the views that Fed may replace short-term maturity bonds with that of long-term maturity bonds instead of announcing another round of Quantitative Easing with the aim to pull long-term interest rates lower.
But this step could backfire as the interest rates in US already are low and this it hasn't had any stimulative effect. US economy grew at less than 1% annual rate over the first half of the year and analysts have warned of a enhanced risk of recession.
Fed is expected to announce their decision at about 2:15 p.m. (1815 GMT) at the conclusion of a two-day meeting.